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Tax
(Balance Sheet)
Tax...
Inspection
Receiving
(Balance Sheet)
Inspectio...
Purchase Requisition
Purchase Req...
Purchase Requisition 
Approval
Purchase Requ...
Quotations
obtained
Quotations...
Preparation of Comparative Statement
Preparation o...
GRN 
Good Recieved Note
GRN...
A purchase requisition is a formal document that is used when an employee needs to request for a purchase.
 
Purchase requisition is usually prepared by requesting department and approved by designated approver.
A purchase requisition is a formal document that is us...
Requisition will be approved by designated manager or supervisor
Requisition will be approved by designated manager or...
In case of Purchase of any item, Quotations are requested from different suppliers by Purchase department to have price with terms and condition offered by them.
In case of Purchase of any item, Quotations are reque...
A comparative statement is prepared to compare quotations based on pricing and supplier strengths and select best supplier
A comparative statement is prepared to compare quotat...
A goods receipt note (GRN) is created to record the delivery of items from your suppliers at company. A GRN is created against an issued purchase order.

Material is transferred to QC warehouse (quaranttine); if inspection is required 
A goods receipt note (GRN) is created to record the d...
Accounts
Payable
Accrual
(Income Statement
(P&L))
Accounts...
Debit
Debit
Credit
Credit
Approval of Goods by Quality Control
Approval of G...
Debit
Debit
Credit
Credit
Invoice
Invoice
Debit
Debit
Credit
Credit
Invoice sent by supplier to Purchase Department is registered in the accounting books. This increases the payable in trial balance.
Invoice sent by supplier to Purchase Department is re...
Cash/
Bank
(Balance Sheet)
Cash/...
Debit
Debit
Credit
Credit
When payment is made to the customer, above registered invoice get settled making payables get reduced.
When payment is made to the customer, above registere...
Inspection
Receiving
(Balance Sheet)
Inspectio...
Accounts
Payable
Accrual
(Income
 Statement
(P&L))
Accounts...
Accounts 
Payable
(Balance Sheet)
Accounts...
Accounts 
Payable
(Balance Sheet)
Accounts...
Stakeholder
Stakeholder
Document Name & Definition
Document Name & Definition
General Ledger Effect
General Ledger Effect
Need to buy 10 laptops. Lets make purchase requisition for that.
Need to buy 10 laptops....
IT Manager (requesting department)
IT Manager (requesti...
VP IT
VP IT
Approval of quotation summary and supplier
Approval of q...
Preparation of Purchase order (PO)
Preparation o...
Approval of Purchase order (PO)
Approval of P...
Preparation of Gate Pass on receiving goods
Preparation o...
$100
$100
$10
$10
$110
$110
Transaction will record GL entry
Transaction will record GL entry
Transaction is impacting Income Statement(P&L) and Balance Sheet
Transaction is impacting Income Statement(P&L) and Balance Sheet
Transaction is impacting Balance Sheet
Transaction is impacting Balance Sheet
Transaction is impacting Balance Sheet and Income Statement (P&L)
Transaction is impacting Balance Sheet and Income Statement (...
Transaction is impacting Balance Sheet
Transaction is impacting Balance Sheet
Quotation Summary is approved by procurement head after reviewing from procurement commity
Quotation Summary is approved by procurement head aft...
A purchase order is an offer document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services

Purchase Order is generated in the favour of selected supplier according to the purchase requisition by Purchase Officer
A purchase order is an offer document issued by a buy...
Purchase order is usually approved by Controller Procurement.  
Purchase order is usually approved by Controller Proc...
A gate pass is a document given to security office so that once purchased items are reached to the office, they should allow them.
A gate pass is a document given to security office so...
Once QC department inspects and approve the item's quality, item moves to normal warehouse from QC. If not approved, item will be returned to the supplier
Once QC department inspects and approve the item's qu...
Purchase Officer
Purchase Officer
procurement team
procurement team
Purchase Officer
Purchase Officer
Procument Head
Procument Head
Security Officer
Security Officer
Store Supervisor
Store Supervisor
Assistant Manager Store
Assistant Manager Store
Accounts Payable Officer
Accounts Payable Offi...
Accounts Officer
Accounts Officer
$110
$110
$110
$110
Payment
Payment
Need to approve Purchase Requisition to proceed.
Need to approve Purchas...
As the requisition has been approved lets obtain quotations from multiple suppliers.
As the requisition has...
Comparative statement need to be prepared.
Comparative statement...
Lets order the item
Lets order the item
Purcahse Order approval
Purcahse Order appro...
Provide Gate Pass to security at the company entrance
Provide Gate Pass to...
Recieve goods from supplier
Recieve goods from s...
Inspect recieved items and approved if its as per standard
Inspect recieved ite...
As items has been recieved, company needs to register in accounting books a liability to pay to supplier. 
As items has been re...
Payment is made to the customer
Payment is made to t...
Procurement Committee
Procurement Committee
Quotations reviewed and selection
Quotations reviewed an...
Release of PO
Release of PO
Purchase order being sent to Supplier
Purchase order being sent to Supplier
Procument department
Procument department
Sending Purchase orde to Supplier
Sending Purchase ord...
$110
$110
$110
$110
$110
$110
$110
$110
PURCHASE CYCLE BUSINESS PROCESS - DETAIL
PURCHASE CYCLE BUSINESS PROCESS - DETAIL
$100
$100
Tax
(Balance Sheet)
Tax...
Inventory
(Balance Sheet)
Inventory...
$100
$100
$10
$10
Transaction will record GL entry
Transaction will record GL entry
Transaction will record GL entry
Transaction will record GL entry
Transaction will record GL entry
Transaction will record GL entryViewer does not support full SVG 1.1